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The couple settled on Frogmore Cottage following their recent trip to Australia, New Zealand and the South Pacific, the report added.

One reason they chose it over Apartment 1 - next door to William, 36, and Kate and their three children - is due to the multi-million pound cost of the refit that would be required for the flat, which is currently occupied by the Duke and Duchess of Gloucester, it is claimed.

Another reason is Harry craves more privacy and doesn't want his family to be as visible as the Cambridges, whose home and the surrounding gardens are a major tourist and paparazzi attraction.

Frogmore Cottage is set on a private estate that is rarely open to the public, and it will give Harry and Meghan and their child - or children - more space.

It is currently divided into five units which were home to royal staff, but it will be transformed into a family home with modern amenities.

Formerly known as Double Garden Cottage, it faces the stunning and sprawling grounds of Frogmore House, in Windsor Castle's Home Park.

The Duke and Duchess of Sussex meet members of surfing community group One Wave during a visit to South Bondi Beach in Sydney, on the fourth day of the royal couple's visit to Australia

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The Duke and Duchess of Sussex will keep their office at Kensington Palace and their country home in the Cotswolds once secluded Frogmore Cottage becomes their official residence.Frogmore Cottage is set on a private estate that is rarely open to the public, and it will give Harry and Meghan and their child - or children - more space.

It is currently divided into five units which were home to royal staff, but it will be transformed into a family home with modern amenities.

Formerly known as Double Garden Cottage, it faces the stunning and sprawling grounds of Frogmore House, in Windsor Castle's Home Park.

The Duke and Duchess of Sussex will keep their office at Kensington Palace and their country home in the Cotswolds once secluded Frogmore Cottage becomes their official residence.

Prince Harry, Duke of Sussex and Meghan, Duchess of Sussex take their seats ahead of the wedding of Princess Eugenie of York and Mr. Jack Brooksbank (Image: Danny Lawson - WPA Pool/Getty Images)

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The couple currently reside in Nottingham Cottage on the palace's grounds.

The 35-acre Frogmore House estate has been a favourite royal hideaway for more than 300 years, and it has sentimental value for Harry and former Suits actress Meghan.

Their wedding reception was held there after they tied the knot at nearby St George's Chapel at Windsor Castle in May.

Their engagement photos were taken in the grounds of Frogmore, and they reportedly had a summer picnic there before getting engaged last year.

The Frogmore estate has its own man-made lake and is home to the Royal Burial Ground and the tomb of Queen Victoria and Prince Albert.

Those interred at the burial ground include King Edward VIII and his wife Wallis Simpson - the divorced American socialite whose intended marriage to Edward sparked a constitutional crisis and led to his abdication in 1936.

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Prince Harry in Devon

Public access is extremely limited because Frogmore House, currently uninhabited, is still used by the Queen and other members of the Royal Family as a retreat for private and official royal engagements.

In a statement, Kensington Palace said: "The Duke and Duchess of Sussex will move to Frogmore Cottage on the Windsor Estate early next year as they prepare for the arrival of their first child.

"The couple have lived at Nottingham Cottage since their engagement last year.

"Windsor is a very special place for Their Royal Highnesses and they are grateful that their official residence will be on the estate.

"The Duke and Duchess's office will continue to be based at Kensington Palace."